Iceland Wins 10-Year Trademark Battle Against British Supermarket Chain

The Nordic nation of Iceland has won a decade-long legal battle against British supermarket chain "Iceland" over exclusive trademark rights. The supermarket chain announced it will offer discounts to Icelandic nationals as a gesture of reconciliation.

According to the New York Times, the Guardian, and other outlets on Wednesday, Richard Walker, chairman of the British supermarket chain Iceland, said he would not appeal the EU General Court's ruling on Iceland's exclusive trademark rights. Last year, the EU General Court ruled in favor of the Icelandic government regarding conditions for trademark use.

The legal dispute between the two Icelands, geographically separated by approximately 1,400 kilometers, dates back 10 years. The supermarket chain Iceland, established in 1970 and listed on the London Stock Exchange in 1984, is a storied enterprise. However, conflict began in 2014 when the company applied for exclusive rights to use the "Iceland" trademark on its products sold within the EU. The Icelandic government, upon learning of this, filed a lawsuit with the EU Intellectual Property Office (EUIPO) in 2016, arguing that the trademark "obstructs Icelandic companies from using their own country's name." Iceland prevailed, and the trademark was cancelled in 2019. The supermarket appealed, but both the EUIPO Grand Board of Appeal in 2022 and the EU General Court last year upheld the lower court's decision.

The EU General Court, handling the third trial, pointed out that products bearing the "Iceland" trademark could be mistaken as imports from Iceland rather than from the British supermarket. The court stated that "geographical names must be left available for public use." This ruling does not mean the supermarket must change its trademark. Rather, it allows not only Iceland but other countries to use the "Iceland" trademark within the EU.

The Icelandic government immediately welcomed the ruling. Thorgerdur Katrin Gunnarsdottir, Iceland's Foreign Minister, said, "Icelandic companies can now clearly reference Icelandic products that embody the values of clean air and natural environment."

Brynhildur Georgsdottir, a lawyer from the Icelandic Business Association who represented the case, stated, "We hope this ruling will lead each country to protect its own name, while also prompting amendments to international law that enable related measures."

As a gesture of reconciliation, the Iceland supermarket chain announced it would convert the legal fees it had earmarked for the EU final appeal into voucher form. Starting Thursday, the company will issue 50% discount vouchers for frozen food products to Icelandic nationals. The Guardian reported that the supermarket has been expanding into Northern Europe since 2024 through a partnership with Icelandic investment firm SKEL, distributing products to Denmark, Sweden, Norway, and Finland.